Recently GBP/USD has been in a volatile corrective structure after breaking below the 1.2800 support level. The British currency is weighted by the uncertainty over formation of the new government and the Brexit situations. There are currently a lot of questions remain open which are expected to be solved slowly. Meanwhile, USD has gained ground after the rate hike and hint on inflation by the FOMC members. Today Bank of England Governor Mark Carney is going to comment about upcoming interest rates and monetary policy decisions which is expected to have high impact on the currency movement today. The United States will deliver the current account report which is expected to show a greater deficit at -124B from -112B previously. Besides, FOMC member Stanley Fischer will speak today. His comments can lead to a good amount of volatility to strike the market today. As of the current situation in this pair, USD is expected to gain further against GBP in the coming days.
Now let us look at the technical picture. The price has rejected the resistance area at 1.2800 several times. As long as the price remains below the level, there are higher chance that the pair will move down to 1.2515 support level in the coming days. The dynamic level 20 EMA is also holding the price currently as a resistance and the bearish bias is expected to continue further until the price breaks above 1.2800 with a daily close.
